Clinical Cell Culture posts record revenues

Tissue-engineering biomedical company Clinical Cell Culture (ASX:CCE, C3) has posted record revenues of AUD$1.4 million, up 51 per cent in the 18 month period from January 1, 2004 to June 30, 2005 (2003: $0.95 million).

C3's revenues increased following the granting of regulatory approval and subsequent sales in Japan and Europe of ReCell -- an autologous cell harvesting device used to treat wounds and other skin defects.

The company's net loss also increased 177 per cent, from $5.1 million in 2003 to $14.1 million (2004-05) due to the establishment of C3's European office and ongoing and development costs in preparation for product launches in Europe.

"The company is undertaking far more significant investments, such as preparing the regulatory dossier for the FDA, for CE Mark or for the Japanese approval," said C3 managing director Troels Jordansen.

C3 expects FDA approval for ReCell later this financial year and the product will be launched in the US about two months after approval is granted, said Jordansen.

The company raised $13.8 million in an institutional placement and share purchase plan during the year with $9.3 million in cash at June 30, 2005 (2003: $7.1 million). A further $10 million was raised after the financial year ended, on August 11, 2005.

Yesterday, C3 had $18.2 million in the bank, said Jordansen. "That is the number we feel confident moving into the final stage of commercialisation," he said.

Once FDA approval is granted, the company will need working capital of between $4 - $5 million to commercialise ReCell, said Jordansen.

Jordansen said the most important milestone for C3 in the past financial year was receiving CE Mark approval for ReCell on 22 March 2005, allowing the company to supply stocking orders to distributors in Europe.

"The first patients have already been treated in Europe, Switzerland, UK and France," said Jordansen.

C3's 2005 financial year spans 18 months in order to synchronise the parent company's reporting period with its subsidiary C3 Operations. The previous financial year for comparison is the 12 month period from January 1, 2003 to December 31, 2003. "We had a bit of a discrepancy with ASIC over what our finance year actually was," said Jordansen.